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Regulation & Policy · 1 min read

Coinbase Backs CFTC in Court Fight Over US Stock Perpetual Futures

A coalition of six firms opposed an injunction targeting equity perpetuals, as the SEC separately reviewed exchange listing rules.

Editorial oversight: Julian Mercer, Chief Editor
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At a glance Court ruling

What happened
Coinbase and five other firms filed a brief backing the CFTC against a legal challenge seeking to halt US stock perpetual futures trading [1].
Why it matters
The case challenges CFTC authority over non-expiring equity derivatives and could alter how retail platforms offer perpetual products [1].
Who is affected
The CFTC, SEC, Coinbase, Kalshi, traditional equity exchanges, and retail derivatives traders [1].
What's next
Continued district court proceedings regarding CMAA's claims and SEC conclusions regarding exchange listing rules [1].
Primary source
cointelegraph.com: Arthur Hayes ‘flattered’ as Coinbase backs US stock perps

Key points

  • Coinbase and five companies filed a brief supporting the CFTC against CMAA's bid to halt US stock perpetual futures trading 1.
  • Judge Valerie Caproni denied a temporary restraining order on Nov. 3, but found CMAA likely to show the CFTC exceeded its statutory powers 1.
  • The SEC filed an opposing brief stating it is reviewing exchange listing rules and has not settled whether the products are security-based swaps 1.

Coinbase and five other firms filed an amicus brief opposing a preliminary injunction against perpetual futures linked to individual US equities 1. The court accepted the filing on Tuesday in an ongoing lawsuit filed by the Capital Markets Alliance Association (CMAA) against the Commodity Futures Trading Commission (CFTC) 1.

CMAA argued that stock perpetual futures should be classified as security-based swaps, a regulatory category subject to stricter limits on retail participation 1. In a Tuesday filing, CMAA alleged that the CFTC approved the contracts without sufficiently clarifying its decision or addressing open regulatory matters 1. CMAA cited roughly $375 million in reported 24-hour notional trading volume on Kalshi's stock perpetual contracts shortly following launch, arguing that the products divert business from conventional equity markets 1. On Nov. 3, US District Judge Valerie Caproni denied CMAA's bid for a temporary restraining order, determining the group had not demonstrated irreparable harm, though she indicated CMAA was likely to succeed on its argument that the CFTC exceeded its statutory authority 1.

Regulatory Scrutiny on Contract Expiry

The Securities and Exchange Commission (SEC) also filed a proposed brief opposing CMAA's request to pause trading, confirming it is reviewing exchange rules governing the contracts while leaving open whether the instruments constitute security futures or security-based swaps 1. Wojciech Kaszycki, strategy adviser to BTCS SA, stated that the absence of a fixed expiration or delivery date complicates treating perpetuals as futures under traditional definitions of future delivery 1. Kaszycki cautioned that an adverse ruling against the CFTC could shift trading toward offshore and decentralized platforms rather than extinguish market demand 1.

Former BitMEX chief executive Arthur Hayes remarked that he was "flattered" by Coinbase's legal defense of stock perpetuals a decade after BitMEX introduced crypto perpetual swaps in 2016 1.

Questions this story raises

What is the legal issue in the CMAA lawsuit against the CFTC?
The CMAA argues that stock perpetual futures should be classified as security-based swaps subject to strict retail trading limits, alleging the CFTC exceeded its authority by permitting them [1].
What position did the SEC take in the court proceedings?
The SEC opposed CMAA's requested trading halt, stating it is actively reviewing exchange rules for listing the contracts while leaving open their statutory classification [1].

Sources

  1. [1] Arthur Hayes ‘flattered’ as Coinbase backs US stock perps — cointelegraph.com, November 13, 2026

Written by Basis Desk's newsroom system from the primary sources above and machine-verified against them before publication. Market figures marked "at the time of writing" come from live exchange data. Report an error: corrections@basisdesk.news · corrections policy.

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